The Government has been accused of inflicting more injustice on victims of the Post Office Horizon scandal by ignoring warnings about a flawed compensation scheme. Senior Labour MP Liam Byrne, chair of the Commons Business Committee, said: “We have warned Ministers again and again that the Horizon redress scheme simply isn’t fair.”

He issued the scathing verdict after it emerged campaigner Sir Alan Bates had been offered a “take-it-or-leave-it” payment of just half of his original claim. Sir Alan was one of hundreds of sub-postmasters wrongly accused of dishonesty or incompetence after money appeared to go missing from their accounts when faulty accounting software was really to blame.

Sir Alan warned that the subpostmaster compensation schemes have been turned into “quasi-kangaroo courts” and he was backed by Mr Byrne, a former Cabinet Minister, who said his committee had warned Ministers “the scheme must be independent, faster and fairer.”

Mr Byrne said: “Yet time after time, our advice was ignored, rejected and rebuffed. And so injustice lives on. The very system designed to deliver redress now delivers delay.

“Sir Alan’s case must be reopened. Our recommendations must be reconsidered. This scandal did more than wreck livelihoods. It broke lives. And justice - long delayed - must be denied no more.”

More than 900 subpostmasters were prosecuted between 1999 and 2015 after Horizon accounting software made it look as though money was missing from their accounts.

Many are still awaiting compensation despite the previous government announcing that those who have had convictions quashed are eligible for £600,000 payouts.

The group litigation order (GLO) scheme was set up to achieve redress for the 555 claimants who took the Post Office to the High Court between 2017 and 2019.

But Sir Alan, who was portrayed by actor Toby Jones in ITV drama Mr Bates Vs The Post Office, said promises that compensation schemes would be “non-legalistic” had turned out to be “worthless”.

The 70-year-old said: “The subpostmaster compensation schemes have been turned into quasi-kangaroo courts in which the Department for Business and Trade sits in judgement of the claims and alters the goal posts as and when it chooses.

“Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items.”

He has also called for an independent body to be created to deliver compensation schemes for this and similar public sector scandals.

Sir Alan was knighted last year for his services to justice, having founded the Justice for Subpostmasters Alliance (JFSA).

Last month, he sent an email to members of his group, calling on victims to take the Government to court over delays to financial redress, adding that a judicial review would “probably be the quickest way to ensure fairness for all”.

It is understood that 80% of postmasters in Sir Alan’s group have accepted a full and final redress or been paid most of their offer.

A Department for Business and Trade spokesman said: “We pay tribute to all the postmasters who’ve suffered from this scandal, including Sir Alan for his tireless campaign for justice, and we have quadrupled the total amount paid to postmasters since entering government.

“We recognise there will be an absence of evidence given the length of time which has passed, and we therefore aim to give the benefit of the doubt to postmasters as far as possible. Anyone unhappy with their offer can have their case reviewed by a panel of experts, which is independent of the Government.”